Correlation Between Great-Sun Foods and Shenzhen Kexin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Great Sun Foods Co and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Great-Sun Foods and Shenzhen Kexin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Great-Sun Foods with a short position of Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-Sun Foods and Shenzhen Kexin.
Diversification Opportunities for Great-Sun Foods and Shenzhen Kexin
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great-Sun and Shenzhen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu and Great-Sun Foods is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Great Sun Foods Co are associated (or correlated) with Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Great-Sun Foods i.e., Great-Sun Foods and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Great-Sun Foods and Shenzhen Kexin
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 0.96 times more return on investment than Shenzhen Kexin. However, Great Sun Foods Co is 1.05 times less risky than Shenzhen Kexin. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.02 per unit of risk. If you would invest 523.00 in Great Sun Foods Co on December 2, 2024 and sell it today you would lose (32.00) from holding Great Sun Foods Co or give up 6.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Great Sun Foods |
| Shenzhen Kexin Commu |
Great-Sun Foods and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-Sun Foods and Shenzhen Kexin
The main advantage of trading using opposite Great-Sun Foods and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-Sun Foods position performs unexpectedly, Shenzhen Kexin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin's long position.| Great-Sun Foods vs. UE Furniture Co | Great-Sun Foods vs. Mengtian Home Group | Great-Sun Foods vs. Huaxia Fund Management | Great-Sun Foods vs. Fiberhome Telecommunication Technologies |
| Shenzhen Kexin vs. Jiangsu Hoperun Software | Shenzhen Kexin vs. Aurora Optoelectronics Co | Shenzhen Kexin vs. Success Electronics | Shenzhen Kexin vs. Linewell Software Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |